The stock issuance is planned for Moscow and London during the first half of the year, and the company intends to raise around $500 million, Reuters reported, citing one of its sources. The second source, close to shareholders in LSR, told the agency that the group is planning to make between $300 and $600 million from the offering. “The choice of the precise period for the offering will depend on the price trend of the company’s shares; their current market price doesn’t fully satisfy shareholders. They are waiting for growth, if only by a third,” the source said.
The company is considering the possibility of attracting funds through an SPO, the group’s general director, Igor Levit, said via the company’s press office. The situation on the financial market does not enable us to clearly plan a particular timeframe or the probable conditions of the offering, he said.
Judging by the stated aims of LSR, the company is planning to sell between 10 percent and 15 percent of its share capital through the secondary offering, said Denis Demin, deputy managing director of Lenmontazhstroi. The premium with which securities are trading on Western markets shows the interest of foreign investors, and in turn their confidence assists the marking of shares on the Russian market, he considered.
Data from LSR’s third-quarter report show the company’s credit liabilities at 19 billion rubles ($62.6 million), of which 8.1 billion rubles ($26.7 million) is due over the next year. The company’s main creditors are Sberbank, Raiffeisenbank and VTB Severo-Zapad.
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